Volkswagen has ended the year on a strong note. Shrugging off the troubles at home in Europe, Volkswagen increased its global group sales by a respectable 20.7 percent in December of 2012, bringing its global group sales for the year above the 9 million mark at an 11.2% increase compared to 2011.

Volkswagen performed most of this miracle in China. Less than 10 years ago, China was treated by Volkswagen as a penal colony for wayward executives. Now it is Volkswagen’s strategic high ground. Volkswagen is on a tear in China. In December alone, it sold 130,000 units more In China than in December 2011. For the full year, Volkswagen is ahead 550,000 units in China, making more than up for the 10,000 units it sold less in beleaguered Europe.

Volkswagen global group deliveries December 2012

12M’12

12M’11

YoY

Dec’12

Dec ’11

YoY

Total

9,070,000

8,160,000

11.2%

784,300

649,700

20.7%

Europe

3,670,000

3,680,000

-0.3%

270,000

300,000

-10.0%

Ger

1,180,000

1,150,000

1.9%

80,000

90,000

-11.1%

WEur ex D

1,850,000

1,980,000

-6.5%

140,000

160,000

-12.5%

EEur

644,300

547,800

17.6%

53,500

52,900

1.1%

China

2,810,000

2,260,000

24.5%

280,000

150,000

86.7%

USA

596,100

444,200

34.2%

62,100

45,500

36.5%

South Am

1,010,000

930,000

8.2%

86,200

74,400

15.9%

Black: VW data. Blue: TTAC calculated

Including Porsche from August 1, 2012. Excluding MAN and Scania

The Volkswagen Group delivered 2.81 million units in China this year, missing GM’s 2.84 million by less than 30,000 – a rounding error in China. Most importantly: All of Volkswagen’s sales in China are high margin products, whereas more than half of GM’s China sales are low-cost, low-margin Wulings. Also, it is quite interesting that GM waited with its announcement of December and full year China sales until the very day Volkswagen would announce theirs, a Sunday no less. Usually, GM announces very early in the month.